Marvel In Trouble

Month Date, 2006:Semiconductor producer Marvell’s share price tumbled yesterday by more than 7 percent after it revealed regulators were looking into its stock activities.

The price slump occurred when the company announced the US Securities and Exchange Commission (SEC) and the Attorney for the Northern District of California had requested certain documents relating to the granting of stock options. Marvell says it intends to fully cooperate with the investigations.

A special committee of Marvell's board has commenced an internal review, assisted by outside legal counsel, relating to past stock option grants, the timing of such grants and related accounting matters. The disclosure adds Marvell to a list of about 60 companies facing scrutiny of their stock options practices in the US.

Marvell sells chips for data storage, communications and networking products and had sales of $1.67 billion for its fiscal year 2006. Marvell is a leading supplier of parts to Fujitsu, Hitachi, Samsung, Seagate Technology and HIT-message board. Marvell has secured a strong market position in storage components.

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